Exhibit 99.1 (c)
REVCARE, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
JUNE 30, 2000
OCPS PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
REVCARE OCPS ADJUSTMENTS COMBINED
----------- ---------- ------------------ -----------
ASSETS
Cash $ 7,319,708 $ 8,361 $ (6,312,662)(1) $ 1,015,407
Restricted cash 382,919 - - 382,919
Accounts receivables, net 197,535 1,048,192 - 1,245,727
Portfolio receivables, net 591,614 - - 591,614
Property, net 3,004,009 157,016 - 3,161,025
Other assets 431,735 221,834 (499,222)(1) 154,347
Intangible assets, net - 331,593 10,603,548 (1) 10,935,141
----------- ---------- -------------- -----------
$11,927,520 $1,766,996 $ 3,791,664 $17,486,180
=========== ========== ============== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 37,943 $ 215,994 $ - $ 253,937
Trust payables 382,919 - - 382,919
Accrued liabilities 294,262 244,247 514,653 (1) 1,053,162
Notes payable 2,107,544 823,269 (439,503)(1) 2,491,310
Related party notes payable - 337,648 3,862,352 (1) 4,200,000
Shareholders' equity 9,104,852 145,838 (145,838)(1) 9,104,852
----------- ---------- -------------- -----------
$11,927,520 $1,766,996 $ 3,791,664 $17,486,180
=========== ========== ============== ===========
The pro forma condensed combined balance sheet as of June 30, 2000 reflects the
following pro forma adjustment:
(1) To record the acquisition of OCPS for $10,500,000 and the resulting
goodwill of approximately $10,900,000.
The above reflects the acquisition of OCPS by RevCare using the purchase method
of accounting. Under the principles of purchase accounting, the assets and
liabilities of OCPS are stated at fair market value (FMV). The excess purchase
price is allocated to goodwill.
REVCARE, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED JUNE 30, 2000
OCPS PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
REVCARE OCPS ADJUSTMENTS COMBINED
----------- ----------- --------------- ------------
REVENUES $3,524,517 $7,388,571 $ - $10,913,088
OPERATING EXPENSES:
Salaries, wages and related benefits 2,473,529 5,404,356 - 7,877,885
Selling, general and administrative 988,649 1,468,264 - 2,456,913
Losses on portfolio receivables 271,661 - - 271,661
Depreciation and amortization 152,904 78,865 397,633 (1) 629,402
---------- ---------- ----------- -----------
3,886,743 6,951,485 397,633 11,235,861
---------- ---------- ----------- -----------
INCOME (LOSS) FROM OPERATIONS (362,226) 437,086 (397,633) (322,773)
---------- ---------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense, net (135,698) (60,256) (252,000)(2) (447,954)
Rental operations, net 111,881 - - 111,881
---------- ---------- ----------- -----------
(23,817) (60,256) (252,000) (336,073)
---------- ---------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES (386,043) 376,830 (649,633) (658,846)
PROVISION (BENEFIT) FOR INCOME TAXES - 14,851 14,851
---------- ---------- ----------- -----------
NET INCOME (LOSS) $ (386,043) $ 361,979 $ (649,633) $ (673,697)
========== ========== =========== ===========
Pro forma earnings per share:
Basic $ (0.05) $ (0.08)
Diluted $ (0.05) $ (0.08)
Number of shares used in computing
pro forma earnings per share:
Basic 8,220,255 8,220,255
Diluted 8,220,255 8,220,255
The pro forma combined condensed statement of income for the nine months ended
June 30, 2000 reflects the following pro forma adjustments:
(1) To record amortization of goodwill over 20 years.
(2) To record interest expense for acquisition financing.
REVCARE, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED SEPTEMBER 30, 1999
OCPS PRO
HISTORICAL HISTORICAL ACQUISITION FORMA
REVCARE OCPS ADJUSTMENTS COMBINED
------------ ----------- --------------- -------------
REVENUES $ 5,241,199 $8,688,481 $ - $13,929,680
OPERATING EXPENSES:
Salaries, wages and related benefits 4,370,710 5,972,291 - 10,343,001
Selling, general and administrative 2,044,205 1,823,901 - 3,868,106
Losses on portfolio receivables 548,014 - - 548,014
Depreciation and amortization 198,697 60,578 530,177 (1) 789,452
----------- ---------- ----------- -----------
7,161,626 7,856,770 530,177 15,548,573
----------- ---------- ----------- -----------
INCOME (LOSS) FROM OPERATIONS (1,920,427) 831,711 (530,177) (1,618,893)
----------- ---------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense, net (117,690) (39,375) (336,000)(2) (493,065)
Rental operations, net 89,041 - - 89,041
----------- ---------- ----------- -----------
(28,649) (39,375) (336,000) (404,024)
----------- ---------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES (1,949,076) 792,336 (866,177) (2,022,917)
PROVISION (BENEFIT) FOR INCOME TAXES (455,964) 31,785 (424,179)
----------- ---------- ----------- -----------
NET INCOME (LOSS) $(1,493,112) $ 760,551 $ (866,177) $(1,598,738)
=========== ========== =========== ===========
Pro forma earnings per share:
Basic $ (0.23) $ (0.24)
Diluted $ (0.23) $ (0.24)
Number of shares used in computing
pro forma earnings per share:
Basic 6,527,225 6,527,225
Diluted 6,527,225 6,527,225
The pro forma combined condensed statement of income for the year ended
September 30, 1999 reflects the following pro forma adjustments:
(1) To record amortization of goodwill over 20 years.
(2) To record interest expense for acquisition financing.